**** Transport Canada Release

Transport Canada announces new regulations to fine companies or individuals who violate the Motor Vehicle Safety Act

Transport Canada is proposing new regulations to fine companies or individuals who violate the Motor Vehicle Safety Act. Penalties could range up to $4,000 for an individual violating the Act, and up to $200,000 for a company. Fines would apply per violation – meaning fines could be stacked for multiple breaches of the Act.

For severe violations affecting multiple vehicles, tires, or child seats – or those occurring over multiple days – Transport Canada could issue several penalties. The ability to fine, also known as an administrative monetary penalty, stems from the Strengthening Motor Vehicle Safety for Canadians Act, which grants the Minister of Transport and Transport Canada new powers to help keep Canadian roads safe.

Financial penalties are a proven and effective deterrent to non-compliance in many regulatory sectors in Canada. These proposed fines would give Transport Canada a new enforcement response to match the gravity and consequences of a violation for non-compliance.

Moreover, the proposed penalties would form part of Transport Canada’s graduated approach to enforcement, which serves as an incentive to violators to come back into compliance, while also deterring future violations.

• These proposed new regulations would bring road transportation enforcement in line with the rail, marine, and aviation sectors, which can already issue administrative monetary penalties.
• Prior to establishing this proposal, Transport Canada carried out extensive consultation on these measures with industry and Canadians via its “Let’s Talk Transportation” forum.
• The proposed penalties complement other actions that have been made to improve road safety, which include giving the Minister of Transport the ability to order a company to:
  • Recall defective or non-compliant vehicles, child car seats, or tires;
  • Pay the costs associated with correcting defects or non-compliance in these products; and,
  • Prevent recalled products from being sold to Canadians before corrections are made.